Glue Store to Cease Operations Nationwide Following Accent Group Decision
In a significant development for the Australian retail landscape, the decades-old fashion retailer Glue Store is set to close all its remaining stores across the country. This decision comes after its parent company, Accent Group, declared the business unprofitable and announced plans to wind down or sell the operations.
Strategic Acquisition and Subsequent Decline
Accent Group, a major retail operator known for brands such as Dr. Martens, The Athlete's Foot, and Platypus, acquired Glue Store in 2021 with high hopes. However, within just three years, the number of Glue Store outlets in Australia was roughly halved, with 17 stores axed in 2024 alone. At that time, Accent Group stated that the remaining stores were expected to be profitable, but this optimism has now faded.
Financial Struggles and Closure Timeline
An ASX announcement on Wednesday confirmed that the remaining 16 Glue Store locations will be closed by the end of the 2026 financial year. The company cited severe financial losses, with Glue Store recording an EBIT (Earnings Before Interest and Taxes) loss of $8.4 million in the first half of the 2026 financial year. This figure includes provisions set aside for the closure process, highlighting the depth of the financial challenges faced.
Impact on Retail Operations and Consumer Response
Closing down sales are already being advertised both online and in various Glue Store locations, signaling the immediate impact on consumers and employees. Accent Group has emphasized that this move is part of a broader strategic pivot, shifting focus to the expansion of other, more successful brands within its portfolio. Currently, the group operates 898 stores across its brands, with 27 new stores opened in the last six months, underscoring its commitment to growth in other areas.
Broader Implications for the Fashion Retail Sector
The closure of Glue Store raises questions about the viability of traditional fashion retail in an increasingly competitive market. As Accent Group moves forward, it aims to leverage its stronger brands to maintain its market position. The company has not provided further comment on the closure, but industry observers note that this decision reflects ongoing trends in retail consolidation and the need for adaptability in a dynamic economic environment.
